Buying single-family homes as rental properties could be good bet in Houston

Buying a house with the intention to rent it out may be a good bet in Houston, with its booming population and low unemployment rate.

In certain markets around the country job growth, particularly in lower paying jobs, population growth and relatively low home prices make investments in single-family homes as rental properties a good opportunity, according to fourth quarter housing data compiled by Dallas-based HomeVestors and Local Market Monitor.

Houston ranked No. 5 on a list of the top 10 markets for investing in single-family homes. Fort Worth and Dallas topped the list.

“Our fourth quarter data shows that investing in single family homes as rental properties remains a good bet in many markets, particularly in Texas and Oklahoma with their low unemployment rates and ability to profit for years from new shale oil and gas development,” Ingo Winzer, president and founder of Local Market Monitor, said in a statement.

Winzer said the markets in the top 10 had strong home price appreciation, but are under-priced by as much as 28 percent.